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TMI Blog1984 (3) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... d. The accountable person claimed that the said amounts are not includible in the net principal value of the estate as the deceased was maintaining accounts on cash basis. No bills were raised during the lifetime of the deceased. There was no understanding or contract with the clients to pay any amount by way of fees, etc. The Assistant Controller did not accept these submissions. He held that the mere fact that the accounts were kept on cash basis will not decide the question as the chargeability to estate duty did not depend upon the method of accounting which is relevant only for the purpose of income-tax assessments. The deceased was entitled to get his remuneration for the services rendered and there is a present obligation on the part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uction of 5 per cent allowed by the Assistant Controller meets fully the requirements of the case. Thus, he upheld the inclusion of Rs. 1,32,250 in the principal value of the estate. Against the said order, the assessee has preferred this appeal. 3. The learned counsel for the assessee strongly urged that there was no contract between the deceased and his clients for the payment of fees. No bills were raised during his lifetime. There was no understanding or contract with the clients. At any rate, there is no ascertainment of any amount. The deceased maintains cash system of accounting. Hence, the amount of outstanding fees is not includible in the principal value of the estate. He urged that the ratio laid down in the case of A.T. Mirji ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts for the payment of fees. The payment of fees normally depends on the work done and fees charged for similar work done in the earlier year and if any additional work is done, extra payment will have to be made by the clients. Merely because there is no written agreement, it cannot be said that the deceased did not expect any payment for the services. The deceased being a professional man would not have rendered services freely to his clients. He would have naturally expected his clients to pay the fees for the services rendered by him. Thus, there was an implied understanding for the payment of fees for the services rendered by the deceased. Merely because the bills have not been raised, it cannot be taken that no amount was outstanding t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t an immediate quantification is not an essential attribute of 'property' under the Act. Property passing on death would include property passing either immediately on death or after an interval either certainly or contingently in view of the wide ambit of the statutory provisions. On the facts of that case, it was held that the salary must be taken to accrue from month to month and the deceased had a legal right to receive the share of profits and could have disposed of this right. The ratio laid down therein squarely applies to the instant case. Thus, in our view, the fee receivable from the clients for the services rendered by the deceased is includible in the principal value of the estate. Thus, it was rightly included. Coming to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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